Govt/Non-Profit

Mfg Firms

Strategic Cost Analysis

What is this service offering?

We determine the impact on cost or profitability of strategic decisions, and we estimate relative cost position versus competitors

Who might need this service?

Manufacturing and product companies that want to assess the cost or profit impact of strategic decisions, as well as public/non-profit organizations that want to analyze or influence the costs of critical products or supply chains (e.g. health products they procure or fund)

SCA can quantify the impact on cost and profit of major decisions, such as new products or technologies, or plant rationalizations

Procurement Strategies

SCA can be used to determine sourcing strategies that minimize total cost of ownership and predict product cost and price at future volume levels

Competitive Cost Assessment

SCA can be used to estimate a client’s cost position versus competitors, which in turn can help: identify cost reduction opportunities; determine whether to invest in a specific market, based on whether cost leadership can be attained; set cost targets required to keep pace with or build an advantage versus competition; or make improvements to business strategy, by assessing competitors’ approaches to achieving profitability.

Why Stone & Associates?

Few firms have our depth of experience in estimating costs external to a company (such as competitor, customer, supplier or supply chain), which are often critical to evaluate strategic decisions or gain insights on economic drivers of industry players.

We are particularly experienced at estimating competitor costs. To develop estimates of costs external to a company requires an understanding of fundamental cost drivers and an ability to configure cost models around them.

I want to thank you (Mike Stone) for all of the hard work. You did a great job, and because of that we will be able to get AIDS drugs to far more people, and we have established a procurement strategy for humanitarian causes that will have implications far beyond this particular contract.
Our success was in no small measure due to the fact that you established such good relationships with the vendors and did excellent [cost] analytic work. ...I am glad that you were able to be at President Clinton's announcement of our success. Hopefully being able to see the work lead to such a great success made all the sacrifice worthwhile.